Sustainable Development at Allianz · 1 ) Figures as per 12M 2012 2 ) As of March 31, 2013 3 )...

Sustainable Development at Allianz

Nomura European SRI ConferenceParis, 23rd May 2013

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1 About Allianz

2 Sustainability strategy and management

3 Sustainability performance

4 Further information

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Key figures at a glance1

Split of revenues, operating profit3 and customers4

Asia-Pacific

Anglo-Broker-Markets

Specialty insurers5

Western Europe

Africa, Middle East

Central EasternEurope

Latin America

2.4% 1.4% 3.2%

20.2%30.5%

9.0%

26.7% 24% 24.2%

3.4% 2.9% 9.0%

33.1%30.4%27.4%

5.3% 1.4%

26.8%

8.5% 9.1%n/a

0.3% 0.4%0.3%

-1.2 +4.2

-0.2 -0.5

-0.1 -2.9

0.0 +1.2

+0.3 -3.4

0.0 0.0

+0.2 -0.6

-0.3 +1.6

Change to 2011 (in %-points)

RevenuesOperating profit

Customers

EUR 106.4bn total revenues

EUR 1,934bn AuM2

EUR 9.5bn operating profit3

183% FCD solvency ratio2

EUR 48.3bn market cap2

Approximately 78mn customers

Present in over 70 countries

1 ) Figures as per 12M 20122 ) As of March 31, 20133 ) Adjusted operating profit of 2012 EUR 9.2bn after the classification of restructuring costs as operating, reflected in the split4 ) Customer figures including non-consolidated companies5) Allianz Global Corporate & Specialty, Euler Hermes, Mondial Assistance, ART

Germany

About Allianz

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Leading P/C insurer globally

Top 5 in Life business globally

Top 5 asset manager globally

Largest global assistance provider

Worldwide leader in credit insurance

One of the leading industrial insurers globally

Building the leading global automotive provider

1 ) All rankings based on 2012 data

Strong market positions and brands1

About Allianz

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Operating profit 2012 (EUR bn)

Total

L/H

AM

Co. & Con.

P/C

Target range published 02/12

Total AuM up 11.8%Higher investment margin

Strong net inflowsHigher performance fees

CR 96.3%Low NatCat

As expected

Strong results in 2012 …

4.0

2.0

-0.9

7.7

2.2

5.0

2.8

2.4

-1.1

8.7

4.7

-1.1

9.5

3.0

3.0

Outlook increased to > 9bn in 10/12

9.0

About Allianz

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4.50 EUR

0 3.00.5

1.0 1.5

2.5

2.0

2.8 EUR bn

Growth Operating profit Dividend3

Group1

Segments1

0 61

2 3

5

4

… and in 1Q13 as well …

P/C CR

90110

105100

94.3%

95

L/H NBM

0

1 3

4

2

1.8%

AM CIR

100 50

52.9%

9080 70

60

Capital1

%100 260

140

208%

180220

Internal solvency

A- AAAAA+

AA stable outl.

AAAA+

Rating5

AA-

1.7 EUR bn

Net income2

0

1.50.51.0

2.0

183%

External solvency4

100 200

120140

180160

1 ) Grey hands show previous year’s values / values end of 2012 in case of capital figures 2) Shareholders’ net income 3 ) Dividend paid in 2013 for FY2012

4) According to Financial Conglomerates Directive 5 ) According to Standard & Poor’s

About Allianz

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-2 2

6

0

+6.6%

-4 4

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Revenue growth 8.3%Robust investment margin

Total net inflows of EUR 43bnCIR 52.9%

Please mind the seasonality of the business and our disclaimer3!

Benign NatCatCR 94.3%

As planned

L/H

AM

CO

P/C 1.34.3 – 5.1

0.92.5 – 3.1

0.9

-0.2

… being well on track to meet the outlook for FY2013

Operating profit (EUR bn)

-1.1 – -1.3

1 ) For FY 20132 ) As % of target range mid-point3 ) Disclaimer: impact from NatCat, financial markets and global economic development not predictable!

1Q 2013 Outlook1 published 02/13 1Q 2013

2.7 – 3.1

9.2 +/- 0.5

30%2

31%2

31%2

20%2

28%2

Total 2.8

About Allianz

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Excellent ratings1

AAAAA+

AAAA-A+

AA-

BBB+BBB

BBB-BB+

BBBB-B+

BB-

CCC+CCC

CCC-CC

R

AAAAa1Aa2Aa3

A1A2A3

Baa1Baa2Baa3Ba1Ba2Ba3

B1B2B3

Caa1Caa2Caa3

CaC

A++

A+

A

A-

B++

B+

B

B-

C++

C+

C

C-

D

E

F

S&P Moody’s A.M. BestAllianz

Stable outlookNegative outlook

Stable outlook

Upgraded in July 2007Outlook improved to “stable” in March 2013Report of March 2013:- capital adequacy: “very strong

level commensurate with a AA rating”

- “very strong competitive position, reflecting very strong segmental and geographic diversity in revenues and profits”

- “very favorable risk-return profile of asset management operations”

Rating on Aa3 levelsince July 2003Report of May 2013:- “Very strong franchise”- “very large diversification”- “good capitalization and

financial flexibility”Outlook negative since February 2012 due to Euro-zone risks and possible consequences for Allianz Group

Rating on A+ level sinceMarch 2003Report of April 2013:- “very strong

business profile”- “very high degree

of diversification”

1 ) Financial strength ratings as of May 17, 2013

AllianzAllianz

Allianz

About Allianz

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1 About Allianz




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ESG risk management

Managing sustainability risks and safeguarding

reputation(e.g. natcat risks)

PhilanthropySupporting the

communities we operate in

(e.g. Allianz Environmental Foundation)

ESG opportunity management

Sizing the opportunities and creating shared

value(e.g. green products)

The three dimensions of Allianz’ approach to sustainability

Risks: We are managing ESG risks as part of our core business processes, as a large insurer and institutional investor, risk management is our core competency

Opportunities: We are seizing commercial growth opportunities social and environmental considerations create

Philanthropy: With a presence in around 70 markets globally we take our responsibility towards society seriously, we use our core competencies to address critical social and environmental needs

Sustainability at Allianz: managing the risks and sizing the opportunities to ensure sustainable and profitable growth

Sustainability strategy and management

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We take an integrated approach to managing sustainability in the business

Support the Group Board on strategic decisions relating to sustainability; direct reporting line

Manage the strategic framework for Group-wide sustainability activities, develop relevant policies

Support functional departments and operating entities in implementing the Group’s strategic approach into business processes and operations

Knowledge hub facilitating best practice exchange across the Group

Alli

anz4

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-leve

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abilit

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com

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nce Allianz Board of

Management

Local entities and global lines

Group-level functional

departments

Direct responsibility with the Board of Management; new ESG Board headed by M. Zimmerer (investments), J. Ralph (3rd party asset management), C. Booth (insurance)

Group-level functional departments such as HR, risk management and procurement, as well as operating entities and global lines assume responsibility for operational sustainability management


ESG Board

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Allianz’ sustainability agenda driven by materiality

Regular identification, prioritization and validation of issues of material importance

Material sustainability issues determined by our business model and stakeholder expectations

Regularly engagement with stakeholder groups at global and local levels to understand their expectations and concerns

Understanding of materiality is also informed by international standards and guidelines for sustainability

We communicate in a transparent way to our stakeholders how the issues impact on our business and our activities, and our response to them

Issues are often directly or indirectly linked, we want to make the complexity transparent and comprehensible


Allianz materiality landscape

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Sustainable development at Allianz means combining long-term economic value creation with a holistic approach to environmental stewardship, social responsibility and corporate governance.

“”

Customer satisfaction and brand value Renewable energy & carbon investmentsGreen products & servicesSRIMicroinsurance

Diversity CompensationEmployee training & developmentEmployee satisfactionCorporate donationsEmployee volunteering

Corporate governance Compliance training & programs Lobbying activities & political donations

Carbon reduction strategy & targetEnvironmental footprint

The four dimensions of Allianz’ sustainability strategy: our EESG approach

Economic Environmental Social Governance


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1 About Allianz




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The economic dimension of sustainability

Net promoter score [% of markets]

Microinsurance customers [million]

Investments renewable energy [EUR bn]

Investments SRI funds [EUR bn]1

CustomersMore satisfied customers compared with peers in 55% of our markets, Allianz loyalty leader in 30% (2011: 28%) of our markets

Products and servicesMore than 130 green products and services offered from asset management to insuranceIndia was the biggest growth market for microinsurance in 2012 with an increase of 11.7mn customersSRI now represents 4% of 3rd party investments, AuM greatly increased due to the inclusion of PIMCO SRI in reporting

Own investmentsRenewable energy portfolio includes over 40 wind and solar parks in Europe, further expansion planned

Economic

Sustainability performance

1 ) Data not comparable due to the inclusion of Pimco in 2012

2010 2011 2012

3.1 3.4

49.1

15.3

AllianzGI Pimco

55

52

46

2010 2011 2012

17.1

3.93.8

2010 2011 2012

2010 2011 2012

1.0

1.3 1.3+30%

+350%+9%-p

64.4

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CO2 emissions per employee [metric tonnes]

Energy consumption per employee [GJ]

Paper consumption per employee [kg]

Business travel per employee [km]

Carbon footprint36% reduction of CO2 per employee since 2006CO2 reduction driven by lower carbon intensity of paper and energy and reduction km travelledAllianz carbon neutral since 2012, 175,000 credits from own projects, remaining footprint neutralized by credits from the carbon market

Key figuresNew energy target: -10% from 2010 levels by 2015Energy from renewable sources accounts for 45% of total energy consumptionShare of recycled paper: 40%; share of FSC1 paper: 33%Environmental management system covers over 80% of employees worldwide

Reducing our environmental impact is one pillar of our climate change strategy

Environmental


2.4

2.5

2.7

2010 2011 2012

-11.4%

2.5

22.3

2.5

24.3

2010 2011 2012

22.3

-8.3%

142143

2010 2011 2012

-0.7%

138 6457

6588

2010 2011 2012

-2.0%

6719

1) Forest Stewardship Council

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Focus on people – enhancing diversity, skills, engagement & helping local communities

Women in executive positions1

% of totalFemale managers2

% of total

Training expenses EUR mn

Training expenses per employee EUR

Employees144,094 employees globally, of which 52% are female and 48% male, 77% are located in EuropeIncreasing share of females managers and women in executive positionsIntensified trainings: 64% of employees and 70% of managers underwent at least one training session

Corporate citizenshipEUR 20mn donated for social, cultural and environmental issuesFinancial literacy program reached more than 100,000 pupils in Germany in 201249 employees from 19 different Allianz subsidiaries volunteered for social OPEX and supported 16 projects / social organizations

1) Women at all executive positions below the Board of Management2) Women functionally responsible for other staff, regardless of level, e.g. division, department and team managers

Social


19.4

17.6

2010 2011 2012

+1.8%-p

19.2

33.9

32.7

2010 2011 2012

33.3

+1.2%-p

93.4

80.0

2010 2011 2012

87.6

+17%

708

606

2010 2011 2012

667

+17%

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ESG governance Compliance management

Establishment of the environmental, social, and governance (ESG) Board in 2012 consisting of 3 Board members to further strengthen the integration of environmental, social and governance issues in insurance and investment activitiesThe ESG Board holds responsibility for further driving our strategic framework, and defining policies and minimum standards across the Group

Political engagement

The implementation and maintenance of the Allianz anti-corruption program, which is compulsory for all employees, continued in 2012. Employee training sessions were held worldwide in classrooms and online in more than 20 languages.A Group-wide compliance quality assurance program was rolled out in 2012, which verifies the implementation and effectiveness of the Allianz compliance management system across the Group, including the anti-corruption programAllianz is recognized as being one of the world’s most transparent multinational companies. In the 2012 Transparency International corporate reporting ranking, we came 10th out of the 105 largest publicly-listed companiesTransparency on donations to political parties

Commitment to collaborate on sustainability issues: Allianz Forum in Berlin hosted over 50 events in 2012 with a total of over 6,000 people attending

Pursuing highest corporate governance standardsGovernance


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Allianz’ sustainability performance continually recognized – all aspects presented in the annual & sustainability reports

Included since 2000Recognized as leader in several areas, e.g., brand management, risk detection, access to financeGlobal #2 2008-2012; RobecoSAM silver class

Included since 2001, one of the longest-standing FTSE4Good companiesSpecial recognition for Allianz’s code of ethics and excellent environmental policy

Allianz rated best in class (“prime status”) Allianz received particularly high scores for environmental management, eco-efficiency, corporate governance and business ethics

Founding signatory (2002) and member since 2009Global insurance sector leader and 8th overall in 2012 ranking; inclusion in the global carbon disclosure & performance leadership indices


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1 About Allianz




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We are offering and working on developing new products and services for our customers to help them mitigate the effects of climate change and manage their own environmental impact, e.g., Allianz RCM Global EcoTrends Fund, Smart RepairIn 2012, the number of “green” products and services offered by Allianz increased to over 130

A growing range of “green” products and services

Economic

Further information

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EUR 1.3bn investments in renewable energy projects in 2012 including over 40 wind and solar parks in Europe Purchase of 4 wind parks in Germany and France in 2012 Further investments planned on an opportunistic basis

Expanding the renewable energy portfolioEconomic

Further information

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Offering microinsurance to more than 17mn customers generating revenues of EUR 79mn

Economic

India (since 03/2004)Savings-linked life insurance cattle insurance accident insurance credit life insurance

Egypt (since 06/2007)Credit life insurance

Ivory Coast (since 10/2009)Funeral insurance mobile savings mobile funeral

Cameroon (since 03/2008)Credit life insurance

Malaysia (since 07/2011)Motorcycle & accident insurance

Indonesia (since 09/2006)Credit life insurance

Mali (since 06/2011)Agro-index

Burkina Faso (since 02/2011)Credit life & agro-index

Senegal (since 03/2008)Credit life insurance

Colombia (since 11/2007)Family life & maternityhome business insuranceaccident & dental assistance

Madagascar (since 03/2008)Credit life insurance mobile accident

Further information

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Reducing CO2 in internal operations and achieving carbon neutrality

Environmental

Carbon reduction strategy is based on the following levers: first to avoid and reduce emissions, second to substitute lower-carbon alternatives, and finally to neutralize remaining emissions through direct investment in carbon projects

Three levers of our carbon reduction strategy

2006 2012 2015

Avoidance & reduction

Energy

Travel

Paper

Substitution

Green electricity

Recycled paper

Green vehiclesBase year

Neutralization

Direct carbon

investments

Target -35%

CO2 footprint

Further information

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17.6%

32.7% 33.3%

19.2% 19.4%

33.9%

Today34% of all management positions

19% in executive positions

Group-wide development programs:

Women in executive positions1

Female managers2

+1.8%-p

+1.2%-p

30% women in the

executive talent pool

Global target:30% women

in Group-wide executive talent pool

2008 2009 2010 2011 2012 2013 2014 2015

1) Including women at all executive positions below the Board of Management.2) Including women functionally responsible for other staff, regardless of level, e.g. division, department and team managers.

Employee diversity: more women in leadership positions

Social

Further information

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We support and encourage volunteering among our employees, and the use of their expertise and competencies for the community’s benefitIn the social OPEX initiative, trained Allianz employees apply business improvement tools to help socially committed organizationsTheir involvement contributes to pride and identify with our company, building skills and team development

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Employee engagement: engaging our employees for the community’s benefit

Social

Further information

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Through structured involvement with strategic partners in the communities where we operate, we support the development of effective solutions to address social concernsIn 2009, we launched the initiative My Finance Coach to take finance into schools; in 2012 we reached over 100,000 pupils across Germany and over 3,000 in Argentina, Indonesia, Malaysia and ThailandFamiliarizing young people with financial issues will help them to make better financial decisions now and in future

Community investment: structured involvement in the communities where we operate

Social

Further information

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We actively participate in international working groups for climate change, asset management and insurance, as part of the UNEP finance initiativeAllianz promotes dialogue between the worlds of business, academia, politics and civil society through the Allianz Forum in BerlinA globally-acting, central department provides political issue management and government relations expertise for the Group

Government and international organizations: sharing knowledge and shaping the discussion

Governance

Further information

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Disclaimer

These assessments are, as always, subject to the disclaimer provided below.

Forward-looking statements

The statements contained herein may include prospects, statements of

future expectations and other forward-looking statements that are based

on management's current views and assumptions and involve known and

unknown risks and uncertainties. Actual results, performance or events

may differ materially from those expressed or implied in such forward-

looking statements.

Such deviations may arise due to, without limitation, (i) changes of the

general economic conditions and competitive situation, particularly in the

Allianz Group's core business and core markets, (ii) performance of financial

markets (particularly market volatility, liquidity and credit events) (iii) frequen-

cy and severity of insured loss events, including from natural catastrophes,

and the development of loss expenses, (iv) mortality and morbidity levels and

trends, (v) persistency levels, (vi) particularly in the banking business, the

extent of credit defaults, (vii) interest rate levels, (viii) currency exchange

rates including the Euro/U.S. Dollar exchange rate, (ix) changes in laws and

regulations, including tax regulations, (x) the impact of acquisitions, including

related integration issues, and reorganization measures, and (xi) general

competitive factors, in each case on a local, regional, national and/or global

basis. Many of these factors may be more likely to occur, or more

pronounced, as a result of terrorist activities and their consequences.

No duty to updateThe company assumes no obligation to update any information or forward-

looking statement contained herein, save for any information required

to be disclosed by law.

Sustainable Development at Allianz · 1 ) Figures as per 12M 2012 2 ) As of March 31, 2013 3 )...

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